Giant bond fund manager Bill Gross said the global economy is on its way to a new "normal" as delevering, deglobalization and reregulation take hold in the wake of the global financial turmoil.

"If you are a child of the bull market, it's time to grow up and become a chastened adult," he wrote in his monthly note posted on Pacific Investment Management Co.'s Web site. "It's time to recognize that things have changed and that they will continue to change for the next — yes, the next 10 years and maybe even the next 20 years."

The new paradigm also includes the United States as no longer the world's consumer powerhouse as its savings rate approaches 10%.

Gross said Pimco expects interest rates to remain low globally "for extended periods," with "the extent and duration of quantitative easing, term financing and fiscal stimulation efforts" crucial to future returns "across a multitude of asset categories, both domestically and globally."

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